B. Riley Financial, Inc. acquired 6.1% stake in bebe stores, inc. for $3 million.
January 15, 2018
Share
B. Riley Financial, Inc. acquired 6.1% stake in bebe stores, inc. (OTCPK:BEBE) for $3 million on January 12, 2018. Under the terms, B. Riley will acquire 0.25 million newly issued shares for $1.5 million and will also acquire 0.25 million shares from Manny Mashouf, Chief Executive Officer, Chairman of the Board of Directors, for $1.5 million. B. Riley will pay $6 per share to acquire 0.25 million shares each from bebe stores and Manny Mashouf. In a related transaction, B. Riley will acquire 2.82 million shares in exchange for cancellation of the entire outstanding principal amount and accrued interest under the loan and security agreement, between bebe stores and the lenders, dated as of May 31, 2017. Upon closing, after the conversion of debt and acquisition of shares, B. Riley will hold 29.4% stake in bebe stores. Subject to mutual agreement between B. Riley and Manny Mashouf, B. Riley has the right to acquire up to 0.5 million shares of common stock from Manny Mashouf for payment of $6 per share in cash within 45 business days. Brett Brewer and Seth Johnson resigned from the Board while Robert Galvin and Corrado Federico submitted resignations to the Board and Kenny Young and Nick Capuano were appointed to the Board as designees of B. Riley and bebe stores agreed to cause Nick Capuano to be appointed to the Board of Directors of BB Brand Holdings LLC, a joint venture of bebe stores. Patrick S. Brown, Matthew C. Barnett, Kelly N. Meric, Ronald E. Creamer Jr. and Dana E. Brodsky of Sullivan & Cromwell LLP acted as legal advisor for B. Riley. Tad J. Freese and Anthony Klein of Latham & Watkins LLP acted as legal advisors for bebe stores and Manny Mashouf.
B. Riley Financial, Inc. completed the acquisition of 6.1% stake in bebe stores, inc. (OTCPK:BEBE) on January 12, 2018.
bebe stores, inc. is primarily engaged in the business of operating retail rent-to-own franchise stores. The Company's rent-to-own Buddy's franchise stores offer furniture, appliances, and consumer electronics to consumers through rent-to-own agreements. The Company leases space for all of its Buddy's franchise stores under operating leases. It offers various product categories, including Featured, New, Clothing, Dresses, Denim, Shoes, and Accessories. Its Featured category includes Bandage Dresses, Bridal, Fall, and Halloween, among others. Its Clothing category includes Tops, Bottoms, Denim, Jackets, and Activewear, among others. Its Dresses category consists of Bandage Dresses, Bodycon Dresses, Denim Dresses, Little Black Dresses, Logo Dresses, Mini Dresses, Midi Dresses, Maxi Dresses, and others. Its Accessories include Bags, Belts, Hats, Shoes, Sunglasses, Watches. The Company operates approximately 64 stores in 12 states in the southeastern United States.
BEBE STORES, INC. 